Question 4 the day : May 2, 2006

The question for the day is a sample practice problem in profit, loss, discounts, an Arithmetic Topic and the problem provides an understanding of the concept of discount and mark up.

Question
If a merchant offers a discount of 40% on the marked price of his goods and thus ends up selling at cost price, what was the % mark up?

1. 28.57%
2. 40%
3. 66.66%
4. 58.33%

Correct Answer - 66.66%. Choice (3)

Explanatory Answer

If the merchant offers a discount of 40% on the marked price, then the goods are sold at 60% of the marked price.

The question further states that when the discount offered is 40%, the merchant sells at cost price.

Therefore, selling @ 40% discount = 60% of marked price (M) = cost price (C)

i.e.,

or M = or M = 1.6666 C

i.e., a mark up 66.66%

Sorted by Subject
Algebra, Arithmetic & Geometric Progressions, Averages and Mean, Clocks and Calendars, Data Sufficiency, English Grammar, Function, Geometry, Interest, Inequality, Mensuration, Mixtures & Alligations, Number System and Theory, Percentages, Permutation & Combination, Pipes & Cisterns And Work & Time, Probability, Profit & Loss, Races, Ratio, Proportion, Set Language and Theory, Speed, Time & Distance, Trigonometry, Miscellaneous, General Knowledge.

Sorted by Date

2003
January 2003, February 2003, March 2003, April 2003, May 2003, June 2003, July 2003, August 2003, September 2003, October 2003, November 2003.

2004
February 2004, March 2004, April 2004, May 2004, June 2004, July 2004, August 2004, November 2004, December 2004.